Economists with the National Association for Business Economics (NABE) are predicting inflation will remain above 2% possibly over the next three years, just weeks after White House Press Secretary Jen Psaki claimed, “no economist” is projecting it to go higher.
“The nation’s business economists have sharply raised their forecasts for inflation, predicting an extension of the price spikes that have resulted in large part from bottlenecked supply chains,” the Associated Press has reported.
Fox Business adds that panelists with the NABE have upped their projections for inflation going forward indicating it could “remain above 2% over the next three years as a result of rising wages and strong demand for goods and services.
Economists, they write, “project that the overall consumer price index will rise 6% year-over-year in the fourth quarter of 2021, compared to September’s forecast of 5.1%.”
Economists Raise 2022 Inflation Estimates https://t.co/lDwA2BYM7W
— Will 🇺🇸 🍢 (@NoLeftTurns) December 6, 2021
Jen Psaki: Inflation? What Inflation?
The bad inflationary news comes just weeks after Jen Psaki, when pressed by a reporter over concerns about inflation said, “no economist” is projecting it to go higher.
“Americans are seeing their dollars, their paychecks stretched right now,” NBC reporter Peter Alexander said at a White House press briefing at the time to discuss Democrat spending bills.
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“Why should Americans not be concerned that injecting another $1.57 trillion or more would further raise inflation?”
“Because no economist out there is projecting that this will have a negative impact on inflation,” she replied.
NBC’s Peter Alexander: “Americans are seeing their dollars, their paychecks stretched right now. Why should Americans not be concerned that injected another $1.57 trillion or more would raise inflation?”
Psaki: “B/c no economist out there is projecting that[.]”
Um, wut? pic.twitter.com/Cz4vcguSvs
— Curtis Houck (@CurtisHouck) November 15, 2021
Cue the sad trombone.
“CPI inflation is expected to remain elevated by the end of 2022 at 2.8% year-over-year, compared to September’s forecast of 2.4%,” Fox Business reports.
The Associated Press reveals that the economists aren’t linking their prediction to government spending, but rather, 87% of the NABE panelists “have identified supply chain bottlenecks as a major factor in the acceleration of prices.”
White House Chief of Staff Ronald Klain has dismissed the supply chain crisis as “high-class problems.”
— New York Post (@nypost) October 14, 2021
Inflation Now and Into the Future
President Biden last week tried to assure the American people that the supply chain crisis isn’t actually happening throughout most of America.
“If you watch the news recently you might think the shelves in all our stores are empty across the country, that parents won’t be able to get presents for their children on holidays this holiday season,” he said.
“But here’s the deal – For the vast majority of the country that’s not what’s happening.”
Biden claims a supply chain crisis happens “every year” and compares his current supply chain crisis to “Cabbage Patch Kids back in the 80s or Beanie Babies in the 90s” pic.twitter.com/L1y2435k3G
— RNC Research (@RNCResearch) December 1, 2021
In reality, White House officials admitted in October that “there will be things that people can’t get” this year for Christmas.
Businesses nationwide are short-staffed and food shortages are becoming so common that people are posting images of their local grocery store’s empty shelves and forcing Twitter hashtags like #EmptyShelvesJoe to trend.
I know there are a lot of parents out there who are worried and wondering if they’ll be able to get Christmas presents for the kids on time.
What I can tell you is that because of the actions we’ve taken, those shelves are going to be well-stocked.
— President Biden (@POTUS) December 4, 2021
News of the panel of economists predicting inflation for years to come has to be disheartening to Americans already feeling pain and suffering in their bank accounts and wallets.
Allianz Financial Group economist Mohamed El-Erian also prognosticated that inflation is here to stay, saying the Federal Reserve’s response is is “going to go down in history as one of the worst inflation calls.”
“They’re looking at inflation that is much higher than they ever expected … much broader than they expected … and that’s going to last even longer than they expected,” he said.
Testifying before the Senate Committee on Banking, Housing, and Urban Affairs last week, Federal Reserve Chairman Jerome Powell admitted that inflation will rise.
Fed Chairman Jerome Powell to warn Congress that inflation may keep rising next year https://t.co/wbYTGpVipk
— CBS News (@CBSNews) November 30, 2021
He also suggested retiring the term ‘transitory’ – meaning ‘of brief duration’ or ‘not persistent.’
“We tend to use [the word transitory] to mean that it won’t leave a permanent mark in the form of higher inflation,” he said. “I think it’s probably a good time to retire that word and try to explain more clearly what we mean.”
Hopefully the length of time both Jen Psaki and Joe Biden spend in the White House, by contrast, is transitory.
In addition to the inflation news, the NABE panelists also downgraded their economic growth forecasts for 2021 for the second consecutive survey.
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